IN WITH FOREIGN INVESTMENTS AND OUT WITH THE LIMITED PARTNERSHIPS

In a further move to reduce my exposure to limited partnerships, I put in sell orders for Calumet Specialty Products (CLMT) with a 23% gain, Markwest Energy (MWE) with a 42% gain and utility company Pinnacle West Capital Corp (PNW) for a gain of 29%. While all three have been great investments up to this point, I didn't like their prospects going forward, so decided to lock in gains and reinvest profits elsewhere.

To add more diversity to my portfolio and seek profits outside the U.S., I've decided to invest the money equally in British American Tobacco (BTI) and Unilever (UN). BTI has a ROE of 28.8% with a dividend yield of 6.70% and $3.32 per share in cash. Unilever, with leading brands like Lipton Tea and Dove soap, has a ROE of 38.70%, a dividend yield of 3.20% and $1.20 per share in cash. Both companies have very little debt.

I see several benefits to making these changes in my portfolio and am looking forward to adding BTI and UN to my long term holdings. While the U.S. seems to be leaning toward a shaky recovery, it doesn't hurt to broaden your investment perspective to include quality companies who make more of their money from global sales. I also see this as part of my move away from speculative issues towards better quality investments.

Star Gas Partners, LP

My first new investment for 2010 is Star Gas Partners, an energy limited partnership. Their dividend yield is 6.50% on their recent share price of $4.14 and the company has a great deal of cash per share. Earnings are more than sufficient to maintain or increase their current dividend, so I think it will be a great addition to my regular stock portfolio.

Star Gas Partners, L.P., a publicly traded Delaware limited partnership was formed on October 16, 1995. The Company is a home heating oil distributor and services provider with one reportable operating segment that mainly provides services to residential and commercial customers to heat its homes and buildings. The general partner of the Partnership is Kestrel Heat, LLC, a Delaware limited liability company is appointed by its sole member, Kestrel Energy Partners, LLC, a Delaware limited liability company. Petro Holdings, Inc., an indirect wholly owned subsidiary of the Partnership is a Northeast and Mid-Atlantic region retail distributor of home heating oil and related services. The Company is a retail distributor of home heating oil in the United States. It also sells home heating oil, gasoline and diesel fuel. It installs, maintains and repairs heating and air conditioning equipment for its customers and provides ancillary home services, including home security and plumbing to its customers. The Company's suppliers include Global Companies, Sunoco Inc. and NIC Holding Corp. It competes with distributors offering a range of services and prices, from full-service distributors, like companies in the home heating oil business. Star Gas Partners markets its products and services under number of trademarks include such as Petro and Meenan. The Company segregates its customers in two catogories residential and commercial. It is subject to number of federal, state and local environmental, health and safety laws and regulations.

Looks Like a Promising Week

Happy Monday Morning! Stock market futures are up and even with the bankruptcy of GM, it looks to be a promising day for the stock market. It would be nice to start the month off with some good news! Speaking of good news, I've found a new addition for my dividend stock portfolio.

Legacy Reserves LP (LGCY) Based in Midland Texas, their primary business is acquiring and developing oil and natural gas properties in the Permian Basin and Mid-continental United States. Their dividend is currently $2.08 which represents a yield of 16.88% at their recent price of $12.32 per share. With earnings of $5.89 per share, they should be able to maintain the dividend going forward. It would still be a good investment if they cut the dividend 50%.

I currently own shares of Copano Energy LLC (CPNO) and while I don't plan on adding additional shares to my position, I do plan on holding on for the dividend income. I think both companies could benefit from higher natural gas and oil prices later this year. Will see how it goes.

Have a great Monday morning and a great week!